What problems is Lockheed Martin facing?

It faces fresh program charges and a cash flow reversal, impacting Q1 results.

Does Lockheed Martin have any competitive advantage?

Yes, it has a record backlog that could support it if it overcomes current challenges.

General Dynamics vs. Lockheed Martin: Analysis Favors GD on Submarine Backlogs

An analysis by 24/7 Wall St. compares General Dynamics and Lockheed Martin after Q1 2026 results, favoring GD due to strong submarine backlogs, while LMT struggles with program charges.

July 2, 2026

1 min read

Source: 24/7 Wall St.

According to an analysis published by 24/7 Wall St. on July 2, 2026, the Q1 2026 results of two US defense giants—General Dynamics (NYSE:GD) and Lockheed Martin (NYSE:LMT)—pulled in opposite directions.

Recommendation Change

Analysts recommend buying General Dynamics over Lockheed Martin, citing its strong performance in submarines and Gulfstream jets.

Analyst Rationale

General Dynamics: Beat estimates due to deep marine backlogs and strong Gulfstream jet performance.
Lockheed Martin: Reported a messy quarter with fresh program charges and a cash flow reversal, despite a record backlog.

Context

GD's performance highlights strength in naval defense, while LMT faces headwinds from program charges. Other analysts are closely watching LMT's developments.

What to Make of It

General Dynamics appears better positioned near-term due to its strong backlogs, but Lockheed Martin could leverage its record backlog if it overcomes current challenges.

Frequently Asked Questions

Due to its strong performance in submarines and Gulfstream jets, providing large and stable backlogs.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.